TM - Toyota: A Profit-Growth Pause No Reason For Concern
2024-05-19 23:50:03 ET
Summary
- Japan's economic and investment conditions are favorable, with rising equity prices and increasing dividends from Japanese firms.
- With the country's stock market in a bullish phase and a weak yen, export companies particularly benefit.
- I reiterate a buy rating on Toyota Motor, given its modest valuation, though the firm forecasts a pause in EPS growth this year to focus on improving its position.
- I highlight key price levels to watch on the chart.
There are clear economic and investment tailwinds blowing across Japan right now. The land of the rising sun has enjoyed rising equity prices in the last few years as its currency weakens substantially. The Bank of Japan's hand may further be forced, given that it was recently reported that the world's fourth-largest economy endured a third consecutive quarter of negative GDP growth....
Toyota: A Profit-Growth Pause No Reason For Concern